Income inequality is refers to the unequal distribution of household and individual income in an uneven manner among a population. From the year of 1980 to 2010, we found that the United States has a relatively high level of income inequality which it faced the greatest economic challenge in the over past decades, the economic pie has indicates that there are a relative gap between the richest people and the poor people in the country. Income inequality has surged as an economic and political issues that leads inequality has poses a major threat in the global issues. Besides, Income inequality has become progressively obvious since in the year of 1980. For example, the distribution of income had 30 to 35% of national income going to the top 10% of earners, the top 10% earners has increased to the 50% , which create a huge gap between the high income workers and low income workers.
Income inequality refers to differences in the distribution of income, meaning the gap of income between the rich and the poor in a nation (Shin, 2012). The level of this inequality depends on many factors, for instance culture, volunteering, the state of the economy,
This examines the behavior of microeconomic in terms of the human capital distribution that affect the income inequality in which comprise not only the whole populace but also the normally working people. The educational attainment and educational inequality can be measured as the human capital distribution. In order to compute for the inequalities of income and education, the generalized entropy index or the theil index was used. To avoid measurement error on inequalities and reduce the potential problems on the omission variable bias, the analysis was conducted through different static and dynamic panel data. The result of regression model in this study have showed that there is a positive relationship between income inequality and income per capita.
Income inequality acts as a means to “wake people up” and make clear to them their need for higher education and more hard work to obtain more money, and thus, more success. As income inequality increased in China and America, there arose a correlation to the increase among men and women of all races and ethnic backgrounds. Despite the fact that income inequality could cause people to make poor decisions and make them insecure in society, income inequality improves the economic systems in America and other parts of the world by serving as a motivation for people to achieve much greater things in the desires of changing their station in life for a happier
While earnings have always been the major cause of inequality in each and every country of the area, since the mid-1990s, their contribution to income inequality remarkably fell. Self-employment also impacts the overall earnings inequality since the income it engenders tends to be less even than traditional salaries. The self employed individuals are generally concentrated in the lower social classes in the majority of OECD countries, yet its effect on inequality continues to be modest because its share of the overall labor income decreased (ranges from 3% to 13%) and represents only 15% of inequality among all workers. (OECD, 2011) 2.2.2 Consequences of Income Inequality Social
Different forms of social inequalities act on income. The prestige of a person, a sports champion, for example, have enough influence and weight to get to advertising companies which are going to give him well-paid work. "Social capital" of an individual, that is to say, friends or entourage with whom he can exchange services, also has an important role to access a well-paid job or a career promotion. This is also the case of "cultural capital", which is transmitted unevenly to individuals, during their education, but also by their parents. Income inequalities are also influenced by other forms of economic inequality.
In western countries, an unprecedented economic growth occurred during the last century: society becomes richer, healthier and more equal. Nonetheless, socioeconomic inequality in health does not disappeared: rich continue to live longer, healthier and better than the poor, and these differences wider over time (Hernandez-Quevedo, Jones, Lopez-Nicolas, & Rice, 2006). Socioeconomic inequalities in health rely on the mechanisms that sort the social stratification of a society. Therefore, welfare state as an institutionalized system of solidarity that redistribute life chances and risks, and as a system of social stratification, plays a crucial role in the persistence of these inequalities in health. In this work the framework of the welfare
The essay Inequality Undermines Democracy by Eduardo Porter discusses the income gap in today’s world. The first main point Porter describes how Americans are not concerned with the income gap even though it is wider than other developed countries. The United States government has expressed little concern over this issue as well since they have done little to anything to restrain the trend. I believe this has caused opportunities across classes to shrink and the middle class does not exist anymore. I would consider my family a working middle class and I hear my family talking about how the middle class has diminished and it is either the rich or the poor.
(Soubbotina, 2004) This is just income inequality. Inequality however is not just limited income though but also manifests itself in terms of gender inequality (in terms of wage earned, education received as shown by the difference in girls and boys enrollment, etc) which has its own social impact on